Tight Oil, Shale to Drive Majors’ Output to New Highs

By the middle of the next decade, US unconventionals will generate up to $20 billion of annual cash flow for the Lower 48. U.S. unconventionals will be crucial for oil majors in the near future – and the majors are taking note. In a new report released by Wood Mackenzie, the potential of unconventionals in the Lower 48 is examined by looking at five U.S. majors (BP plc, Chevron Corp., Equinor ASA, Exxon Mobil Corp. and Royal Dutch Shell plc). “Following BP’s $10.5 billion deal with BHP , all of the supermajors have a footprint in the Permian Basin, and are poised to deliver an unprecedented phase of production growth that will see output reach new highs over the next decade,” Roy Martin, research analyst in WoodMac’s corporate upstream team, said in a release. In terms of value and volume, tight oil and shale gas will be essential to […]